Josephine council directs staff to advance financing plans for Morningside, Morgan Farms PIDs
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Summary
After detailed presentations and extended Q&A, the city council directed staff to proceed with plan‑of‑finance work and publication steps for two developer‑led public improvement districts — Morningside and Morgan Farms — noting statutory notices, appraisals and offering documents are next steps.
A majority of the Josephine City Council on Feb. 9 directed city staff and bond counsel to move forward with plan‑of‑finance work for two proposed public improvement districts (PIDs) tied to the Morningside and Morgan Farms developments.
Rudy Seguda, bond counsel with McCall, Parkhurst & Horton, told the council the next steps include adopting resolutions, publishing certified notices to landowners and preparing service and assessment plans that would support special assessment revenue bonds. "This is not an action item," Seguda said, asking only for direction to proceed with drafting offering documents and coordinating appraisals, underwriting and legal work.
Jordan Sawyer, regional director for P3 Wertz, said draft service and assessment plans are expected to come back in roughly 28 days and noted a tentative bond‑sale timetable that could place a sale in April if schedules hold.
Council members pressed developers' counsel and bond counsel on who bears financial risk and what public benefits the PIDs will fund. Robert Miklos, representing the developers, said the bonds are nonrecourse to the city: "If the worst case scenario happens, nobody ever goes to the city — it never hits your general fund," he said, adding that assessments run with the property and statutory buyer notice is required at closing.
Councilmembers repeatedly raised homeowner cost concerns — tax‑equivalent rates were discussed in dollars and cents per month as examples — and asked whether sunset or milestone provisions could limit long delays. Counsel answered that phasing rules and pre‑levy sunset protections can apply before assessments are recorded, but once assessments are levied they "run with the land." Seguda said staff will return with detailed service and assessment plans, legal protections and the long offering documents needed for securities compliance.
By voice vote the council approved motions directing staff to proceed with the plan of finance for Morningside and then for Morgan Farms; the transcript records "motion carried" for both items but does not include a roll‑call tally in the record.
The council will consider draft service and assessment plans and the related notice and hearing items when they return to the agenda.
